Gbpusd Stable Amid Boe Decision

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Gbpusd Stable Amid Boe Decision

Gbp/Usd Stable Above 1.2650 Amid Boe Decision

The Bank of England's meeting concluded with no change to the interest rate (5.25%). After the news, the GBP/USD turned positive and even reversed some of its daily losses.

By the end of the day, the GBP/USD was seen above the 1.2650 support zone, as most of the BoE members are still not ready to cut the rates. Additionally, even the BoE governor has tied the inflation rate & and other economic data to the policy pivot.

Gbp/Usd Chart Shows Rsi Under 40

closer look at the RSI on the GBP/USD 4-hour chart shows that its reading has moved below 40. Furthermore, the last three closes on the 4-hr chart were also under the major SMA lines (100 & and 200), which means the bearish momentum is still strong.

The following support zones reveal that 1.2650 remains vital, as the 23.6% fib retracement is also present here. So if the GBP/USD drops under the 1.2650 handle, it will open the doors to the 1.2600, followed by the 1.2540 support where the 38.2% fib retracement is located.

The upside shows the nearest resistance at the 1.2700 handle, where the 200 & and 100 SMA lines are present. Next up is 1.2760, followed by the static level of 1.2780.

Although the technical readings are still relevant, the decisions from the BoE and Fed have taken the central stage now. Whichever central bank goes ahead with a rate cut first will be the one to lose the battle in GBP/USD.

The BoE has not changed the policy rate, while the Fed made the same decision at the last meeting. In addition, both central banks have clarified that changing the interest rate will be tied to the economic data and inflation.

With Friday's session up ahead, the GBP/USD will likely go into a consolidation phase as the traders ready will prepare for the week ahead. There's also a chance that Friday's data docket could impact the GBP/USD's next move.

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